HOUSTON - Energy companies should be open to disclosing the chemicals used in hydraulic fracturing, a drilling technique that has helped them to tap vast new oil and gas resources in the U.S., Anadarko Petroleum Corp. President and Chief Executive Officer Jim Hackett said Wednesday.
"We need to fully disclose chemical composition," Hackett said at the IHS CERAWeek energy conference in Houston.
"There is no doubt that is something we have to do in order for people to trust us," Hackett said.
Separately, the head of Houston-based Anadarko said it's unlikely the U.S. will become a major player in the business of exporting natural gas, as the chemical industry is likely to oppose the idea. Several new plants are being constructed with the idea natural gas prices will remain low in the U.S., Hackett said.
"I won't count us being a major player," Hackett said.
The Evolution of the Shale Gas Revolution
Exploring and developing shale in Europe is "treading on new territory," said 3 Legs Resources Chief Executive Officer Peter Clutterbuck during a morning session titled, "Unconventional Gas Outside North America: Gathering Momentum after a Slow Start?".
While there has been a rapid expansion of the international tight gas portfolio, to date, no commercial development has occurred outside of North America. However, Clutterbuck said higher gas prices in Europe make extracting shale gas economically viable.
Clutterbuck's 3Legs Resources was the first company to successfully produce shale oil in Europe from a multi-fracked well in Poland, and he believes shale gas will play an important role in the future of energy in eastern Europe as the region moves to decrease its dependence on piped oil.
NADRA UKRAYNY Vice Chairman and CFO Maksym Maksimentsev said new government leadership in the Ukraine has helped the country focus on building up its domestic energy supply rather than relying on imported energy resources.
Ukraine already has a "strong support of the government" due to new leadership over the last decade that has put together a domestic energy policy for the country.
"They are changing the legislative environment and favoring investments in most of the unconventional and conventional exploration and production," said NADRA UKRAYNY's Vice Chairman & CFO Maksym Masimentsev.
The shale uprising has barely started in Europe so it's too early to talk about the momentum, said Shell's Melvyn Giles, global theme leader of unconventional gas.
Between 2005 and 2011, 25 tight gas/shale gas wells were drilled in Europe, while more than 30,000 were drilled in North America during the same time period. Europe's geology is very different from North America's making it difficult to adopt North American best practices in Europe. There are also significantly more governmental bodies with power to make different decisions for the areas they govern.
Since there are no proven resources to date, Europe will need a "viable development outline." Giles predicts the region is still five years to a decade away from ramping up resources.
With smaller and more complex basins, Europe still needs key technologies to "identify sweet spots ... and address environmental concerns," added Giles."We're going to need the resource and strong demands, we're going to need the right terms of condition, we're going to need the infrastructure."
Clutterbuck commented that the service industry has been extremely effective in dealing with the demand of equipment needed in developing the unconventional gas.
For Europe to reach shale success, Giles listed six steps that need to be taken:
Europe's unconventional gas is in the process of an "evolution rather than a revolution" right now, he said.
-- Dow Jones Newswires' Isabel Ordonez contributed to this report.
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